Yes, a teenager can open a savings account at nearly any bank or credit union, but almost always with an adult listed as joint owner until the teen reaches the age of majority, which is 18 in most states. No federal law bars minors from holding a savings account. The adult requirement is a bank policy rooted in contract law: minors generally cannot be bound to contracts, and a deposit account is a contract.1OCC. Guidance to Encourage Financial Institutions Youth Savings Programs and Address Related Frequently Asked Questions A few states let minors open deposit accounts on their own, but most banks still require joint ownership regardless.
Why an Adult Has to Be on the Account
Under common law, a contract signed by someone under the age of majority is voidable. The minor can walk away from it; the bank cannot. If a bank opened an account solely in a teen’s name and the teen later overdrew it or racked up fees, the bank would have no legal remedy. Adding an adult joint owner solves that. The adult shares full liability for the account under the joint account agreement, including overdrafts and fees the teen creates. That is why the adult, not just the teen, signs the account documents. The FDIC requires each co-owner of a joint account to sign the signature card or otherwise be identified in the bank’s deposit records as a co-owner.2FDIC. Financial Institution Employee’s Guide to Deposit Insurance – Joint Accounts The co-owner has to be a legal adult, meaning at least 18 in most states and 19 or 21 in a few.
Joint Account or Custodial Account
Families looking at accounts for a young person will run into two very different structures, and the difference matters.
A joint savings account makes the teen and the adult co-owners with equal access. Either one can deposit or withdraw at any time. The money is not a legal gift to the minor, and the adult can be removed from the account once the teen turns 18. This is the usual setup for a teen’s everyday savings from a part-time job, allowance, or gifts.
A custodial account under the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA) works differently. An adult donor makes an irrevocable gift of assets to the minor. The custodian manages the assets, but the money legally belongs to the child, and the custodian cannot take it back. When the minor reaches the state’s termination age, typically 21 but ranging from 18 to 25 depending on the state and as high as 30 in some, the minor gains full control and the custodian’s role ends.3Cornell Law School Legal Information Institute. Uniform Transfers to Minors Act
For a teen’s own savings, the joint account is simpler and more flexible. Custodial accounts fit longer-term gifts or investment transfers from parents or relatives.
Documents You Both Need
Federal rules require every bank to run a Customer Identification Program before opening any account. At minimum, the bank has to collect four pieces of information from each account holder: full legal name, date of birth, a residential address, and a taxpayer identification number, which is usually a Social Security number.4eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks Both the teen and the adult provide all four.
Each person also needs identity documents, and the requirements differ by age. The adult brings an unexpired government-issued photo ID, usually a driver’s license or passport, and some banks also want proof of address such as a recent utility bill or lease. Because most teens do not have a driver’s license or passport, banks typically accept a birth certificate, Social Security card, or school ID from the minor. The exact combination varies by institution.
If the teen is not a U.S. citizen, banks can accept an ITIN in place of a Social Security number, along with a foreign passport or other government-issued ID from the teen’s country of origin. Not every bank accepts these alternatives, so call the branch first.
How to Open It
Most banks let you start the application online, but at least one in-person visit is usually required for a minor’s account so both people can sign the signature card and have their IDs checked. Some institutions handle the whole process digitally with electronic signatures and document uploads; policies vary.
On the application, enter full legal names exactly as they appear on the identity documents. Mismatches slow things down. The teen goes in as the primary account holder, and the adult is listed as joint owner. You will also pick the account type. Many banks offer youth-specific savings products with lower or no minimum balances and waived monthly fees.
An initial deposit is usually required to activate the account. Some youth products open with as little as $5, others ask $25 or more. You can fund it with cash at the teller window, an electronic transfer from another account, or sometimes a check. Applications are generally approved within a few business days, and account documents including any ATM or debit card typically arrive in the mail within seven to ten business days.
Fees, Minimums, and Overdraft Settings
Youth savings accounts at many banks skip monthly maintenance fees and minimum balance requirements. Those perks usually run until the account holder turns 18, and at some banks continue through college age, up to 24. After that the account may convert to a standard product with regular fees, so ask about the transition policy before opening.
Federal rules also add an overdraft protection worth knowing. Under Regulation E, a bank cannot charge overdraft fees on ATM withdrawals or one-time debit card purchases unless the account holder has opted in to the bank’s overdraft service.5Consumer Financial Protection Bureau. Regulation E – 1005.17 Requirements for Overdraft Services If you never opt in, the bank simply declines transactions that would overdraw the account. For a teen’s first account, staying opted out is generally the safer setting.
Who Can Move the Money
On a joint savings account, both owners have full access. Either person can deposit or withdraw without asking the other, which means a parent listed as co-owner can legally take the teen’s entire balance, and the teen can do the same in reverse.6Consumer Financial Protection Bureau. A Joint Checking Account Owner Took All the Money Out and Then Closed the Account Without My Agreement For most families this is a non-issue, but a teen should understand that a joint account is not exclusive control. If the co-owning adult is a non-custodial parent or a more distant relative, shared access is worth talking through before opening.
Many banks offer transaction alerts, spending notifications, and linked parent-and-teen dashboards on youth accounts. These let a parent monitor activity without logging into the teen’s account directly.
Tax on the Interest
Interest earned in a teen’s savings account is taxable income even though the account holder is a minor. Whether that matters in practice depends on how much interest the account earns.
- Under $1,350 in unearned income (for 2026): the teen does not need to file a federal tax return based on this alone, because the standard deduction for a dependent with only unearned income covers the first $1,350.7Internal Revenue Service. Revenue Procedure 2025-32
- Between $1,350 and $2,700: the teen may need to file, and the amount above $1,350 is taxed at the child’s own rate.
- Over $2,700: the kiddie tax applies. Unearned income above $2,700 is taxed at the parent’s marginal rate, and the teen files Form 8615 with their return.8Internal Revenue Service. Topic No. 553, Tax on a Child’s Investment and Other Unearned Income (Kiddie Tax)
For most teens with a plain savings account, interest will fall well below $1,350 and no filing is needed. Custodial accounts, inherited assets, or investment gifts can push the total up faster than expected.
What Changes at 18
Turning 18 changes the legal picture. The teen now has capacity to contract and no longer needs an adult co-owner. What happens next depends on the account type.
On a joint savings account, most banks will remove the adult co-owner and convert the account to an individual account in the teen’s name. Some banks do this automatically; others require a branch visit and new signature documents. Any fee waivers or minimum-balance perks tied to the youth product may end at 18, and the account may switch to a standard product, so ask what the standard terms will be.
On a custodial UTMA or UGMA account, the custodian’s authority ends at the state’s termination age, typically 21 but sometimes as early as 18 or as late as 25. At that point the account is re-registered in the young adult’s name alone.
Turning 18 is also a good time to compare interest rates, fees, and features across banks and credit unions. Adult accounts are no longer off-limits, and a higher rate can make a real difference as the balance grows.